Your funeral will be one of the single most expensive events in your lifetime. Today, the average funeral costs between $7,000 and $12,000. And that figure only covers the basics. If you decide on more expensive options for the casket/urn, flowers, catering, memorial services, or holding multiple viewings, it could cost thousands more. Therefore, many people are purchasing plots before they die to lock in the lower rates. However, some people are investing in burial plots as an alternative asset. If you’re wondering whether it would make a good addition to your portfolio, here’s what you need to know about this unusual type of investment.
Why Are People Investing in Burial Plots?
1. It eases the financial burden on your family.
Although it may seem obvious, this is a valid question. First and foremost, people choose to buy burial plots to help relieve the stress of their own death. It also eases the financial burden it puts on your family. Planning ahead allows you to give your family one final gift.
I recently lost my father, and I can tell you that making important financial decisions was the last thing I wanted to do while I was grieving. So, if you are looking at investing in burial plots, remember that it will also provide great emotional and financial relief for your loved ones when you pass. Instead of wasting energy on these decisions, they will be able to better cope with their grief and support one another.
2. Saving during your lifetime makes it more affordable.
If you purchase them now, it gives you time to pay off the burial plots while you’re still around. Spreading out the cost across your lifetime makes it easier to afford. And, you can contribute to a dedicated account and use compounding interest to help cover the final costs. While your time on Earth may be limited, you should use it to your advantage.
3. You’ll have more to leave your loved ones.
Saving up now also means the estate will have fewer expenses. This equates to more wealth that you can leave for your benefactors. Instead of paying for funeral costs and burial expenses, the money can be put to better use. Or, it could be passed on as generational wealth to help support your family in the future.
4. It gives you the final say in your funeral arrangements.
Furthermore, investing in burial plots also allows you to dictate the details of your final arrangements. You can choose exactly how and where you want to be laid to rest.
While some think it’s a morbid comparison, shopping for burial plots is similar to buying a home. You can look for a specific locale or choose the exact placement on the grounds. And, you can ensure that you choose a cemetery that maintains the landscaping so it will be attractive and easy for people to find. You also have the option to purchase family plots and arrange for enough space for all your loved ones to be buried near you.
5. Burial plots have a high appreciation value.
However, the most controversial reason for investing in burial plots is their value as assets. Due to several factors, the value of burial plots is on the rise. So, purchasing them now could bring a high return on your initial investment.
What Makes a Burial Plot Valuable?
Location
When it comes to real estate, location dictates value. The more sought-after locations are more expensive. There will be a large price difference whether you are looking at historic cemeteries, proximity to celebrities, scenic overlooks, access to major roads, or interment in a mausoleum. And don’t forget, people are willing to pay more to get what they want.
Demand
Death is a fact of life. Therefore, there will always be a need for burial plots. An estimated 2 million Americans die each year, and this number is likely to increase as our aging population collectively grows older. However, many cemeteries are becoming overcrowded which creates a greater demand for burial plots.
Return On Investment
With such high demand for burial plots, it presents a promising opportunity. Plots that once sold for $1,500 are now selling for over $4,000. So, there’s a good chance that you will see similar returns on your investment if you purchase plots now. Cemeteries that are currently empty could be a hot commodity 25 years from now, especially as demand increases.
Is It Still Worth Investing in Burial Plots?
The laws of supply and demand suggest that burial plots are a relatively low-risk investment. However, as with all investments, you need to do your due diligence and evaluate whether it’s the right move. If you’re interested in investing in burial plots, a call to the local cemetery or a quick search through Craigslist will give you a better picture of the value of land in your area. It will also help you determine which locations are the most valuable.
Despite the negative connotations associated with death and burial plots, you can’t deny their value as an asset. Real estate holds value, and the historical data indicates that the demand will only increase in the years to come. Spaces that once sold for a few hundred dollars now sell for several thousand. You can find several stories in USA Today and the Wall Street Journal that tell the story of people who have sold their burial plots for huge gains.
Therefore, purchasing desirable plots that will appreciate could earn you a huge profit. Although there are never any guarantees, it appears that many investors agree that it is still worth putting your money into burial plots. For those looking to invest in alternative assets, buying plots that are dirt cheap could net you large gains in the years ahead.
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Jenny Smedra is an avid world traveler, ESL teacher, former archaeologist, and freelance writer. Choosing a life abroad had strengthened her commitment to finding ways to bring people together across language and cultural barriers. While most of her time is dedicated to either working with children, she also enjoys good friends, good food, and new adventures.